Does a Lawsuit Loan Affect My Credit Score? (Spoiler: No)
3 mins read
Published Apr 2, 2025
Your Credit Score is Irrelevant Here
One of the biggest fears plaintiffs have is that applying for funding will ruin their credit or that they will be rejected because of a low score. We have good news: Your credit score does not matter.
Traditional lenders (banks, credit card companies) rely on your credit history to judge whether you are "trustworthy." At World Legal Funding, we don't look at you; we look at your lawsuit. The "collateral" for the advance is the potential settlement money, not your personal financial history.
Invisible to Credit Bureaus
Because this transaction is a purchase of an asset (your future settlement) and not a personal loan, we do not report it to the major credit bureaus like Equifax, Experian, or TransUnion.
This means applying for funding will not trigger a "hard inquiry" on your report (which usually drops your score). Furthermore, the funding itself will not show up as a debt on your report. It is completely invisible to other lenders, landlords, or employers.
Protecting Your Borrowing Power
Since pre-settlement funding doesn't increase your debt-to-income ratio on paper, your ability to borrow for other life necessities remains intact. If you need to apply for a mortgage, a car loan, or a student loan in the future, your transaction with us will not stand in your way.
We designed this process to be a lifeline, not a burden. It allows you to access cash now without compromising your financial reputation.
